Wall Street ends lower; Trump's comments dampen sentiment

Reuters New York | Updated on January 15, 2018 Published on April 13, 2017


US stocks had eased on Wednesday and the S&P 500 closed below a key technical level for the first time since Election Day, pressured by lingering geopolitical concerns and President Donald Trump's comments on the dollar and interest rates.

Trump said in a Wall Street Journal interview that the dollar “was getting too strong,” though he also said he would like to see interest rates stay low.

The dollar, which has risen along with prospects for higher rates, hurts profits at U.S. multinationals when it strengthens.

“Markets don't like uncertainty,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

“This just kind of added another wild card into the mix in a way, whether there will be actions taken to keep the dollar from strengthening further.”

Investors sought shelter in defensive shares and other low-risk assets. Industrials and materials were the biggest drags on the market along with financials, while utilities, staples and telecommunications gave the S&P 500 its biggest lift.

The S&P financial index was down 0.9 per cent a day ahead of results from three major banks in what will mark the start of the corporate earnings season. Analysts are expecting earnings to have risen 10 per cent for all S&P 500 companies in the first quarter, Thomson Reuters data shows.

The materials and industrials indexes both ended more than 1 per cent lower on the day.

In a sign that further weakness may be ahead, the S&P 500 closed below its 50-day moving average for the first time since November 8. The CBOE Volatility index, Wall Street's fear gauge, extended recent gains, a day after it closed above 15 for the first time since the election.

Rising US tensions with Russia, North Korea and Syria after US missile strikes in Syria last week and the moving of US warships toward the Korean Peninsula have kept investors cautious.

The Dow Jones Industrial Average closed down 59.44 points or 0.29 per cent to 20,591.86, the S&P 500 lost 8.85 points or 0.38 per cent to 2,344.93 and the Nasdaq Composite dropped 30.61 points or 0.52 per cent to 5,836.16.

Investors are concerned these developments could distract Trump from pursuing pro-business policies such as tax cuts, simpler regulations and higher infrastructure spending, promises that have powered Wall Street to record highs since his election in November.

Wells Fargo, Citigroup and JPMorgan are due to report results on Thursday, the last trading day of the week ahead of the Good Friday holiday.

Delta Air Lines closed down 0.5 per cent at $45.05 despite a better-than-expected quarterly profit and an upbeat forecast for current-quarter passenger unit revenue.

Declining issues outnumbered advancing ones on the NYSE by a 2.16-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favoured decliners.

The S&P 500 posted 12 new 52-week highs and one new low; the Nasdaq Composite recorded 51 new highs and 42 new lows.

About 6.2 billion shares changed hands on US exchanges, compared with the 6.6 billion daily average for the past 20 trading days, according to Thomson Reuters data.

Published on April 13, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.